I2 Technologies Inc, considered a high-flyer in the supply chain management industry, has agreed to acquire one of its partners, transportation and logistics software specialist InterTrans Logistics Solutions of Markham, Ontario, in a deal worth around $97m. Under the terms of the agreement, i2 will issue 1.66 million shares of its common stock for all the outstanding shares and stock options of InterTrans. InterTrans and i2 first got together in May 1997, when they agreed to integrate transportation-specific algorithms from InterTrans’ transportation planning and execution software suite into i2’s Rhythm supply chain suite. I2 has been reselling the package ever since, and has already carried out much of the necessary integration work. The two share a number of joint customers. I2 spent $200m on acquisitions last year (CI No 3,163), and saw sales shoot up 128% to $200.7m (CI No 3,333). It faces stiff competition in a lively market from the likes of Manugistics Group Inc, SAP AG, Peoplesoft Inc’s Red Pepper and Baan NV, many of which are also completing acquisitions and on the lookout for more. InterTrans was formed in 1991 and has some large third party logistics providers as customers in North America, as well as a customer base of manufacturers, retailers and distributors worldwide.
